New Project: Chandler AZ flip

[Mazz Gino]

Hey BP, So I just stated my first flip in Chandler Az! Super excited to hit the ground running. Contracts have been signed, closing is set to take place on the 20th of March. As an added bonus, the sellers sold the home with all belongings staying. Furniture is solid and there seems to be a decent amount of "valuable" things laying around. Lots of model airplanes, cooking appliances, tools, motor scooter, ect. Step one is to get as many contractors and subs through the door as possible before we officially close. Purchase price: $261,700 $105.35/sf Budget of $20k $8.00/SF Neighborhood is at $135-$150/SF I am confident I can fall around $140/SF. The only thing that makes me nervous is that this home does not have a pool so it will be interesting to see where we fall when all is said and done. I think we will exceed our budget. The quotes we have been getting are pointing towards at $25-27k job here... need to work on that. Major work to be done: Flooring throughout Paint interior and exterior Bathroom remodeling New granite in kitchen Landscaping General repairs Finishing touches NEED ADVICE Need a good recommendation on a tile and flooring guy in Chandler Az. I've been getting a lot of quotes and these contractors seem to think a 40% waste factor is what it's going to take to get the job done.. Does anyone have a go to tile and flooring guy that they use in the Valley? Thanks, G

[Mazz Gino]

Update: estate sale is complete and house is cleared out! Estate sale brought in $3400. Not fantastic but ever little bit helps. Wound up donating a lot of goods to Salvation Army.

Sub contractors are slated to start on Thursday.

Already completed landscaping.

Anticipated completion date for all work is April 26.

I will keep this discussion posted with financials, project progress, and before and after pics to come.

[Mazz Gino]

Ok everyone so here are the final results. 

Not too bad for my first flip but I would like to see closer to 15% ROI on my next one. I see that the national average for flips is a profit of $50+/- K. Not sure how they computed that average i.e size go homes, dollar cost of homes, etc..

Lessons learned:

Don't let the agent spend your money 

I did not need exterior paint 

Didn't need new rock on my landscape, just a guy with a rake would have done fine.  

Don't do a tiered commission structure, just stick with a flat commission rate. 

Be careful of the buyer you choose. I worked with a VA buyer. Love those guy and what they do for our country but I feel like there were a lot more expenses involved with closing.

ORDER GRANTE ON DAY 1

Lead time on my granite was 3 weeks. Did it towards the end of the project. Threw me off my completion date goal by at least 10 days. 

Here is the Zillow link:

https://www.zillow.com/homedetails/1202-E-Geronimo...

Unfortunately it looks as if the pics are gone! 

Also price info is not correct. The house sold for $357,500

The list price was $365K

It was on the market for 2 days before we received this offer. 

Closing took over 30 days which was disappointing. My experience with the VA made it seem like they are slow to work with. For example, getting the appraisal done took nearly 2 weeks.

I have identified a few areas that I can approach differently on my next go around. If I were to do this project over from the start I could have saved close to $5K in expenses. Should have, would have, could have but all in all, great experience and I learned a lot. I also assembled a good team so If anyone needs some recommendation for quality guys in the valley let me know. 

Sale price	$357,500.00
commission	6.00%
closing fees	$1,232.00
Title	$1,708.00
other closing costs (HOA+termite+notary+home warranty+taxes)	$3,845.09
net after sale	$329,264.91
buildout cost	$37,178.14
holding costs	$1,793.91
net revenue	$290,292.86
total aqusition cost	$262,969.70
gross profit	$27,323.16
misc expenses	$1,216.20
Net Profit	$26,106.96
ROI	8.42%

[Alf Penland]

Congrats!

[Sebby Gabre Madhin]

Sounds great for a first one!  Congrats!